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Calculate the contractor's True Profit and the carrying costs paid by the contractor. Assume a 10% retainage on all contractor payments with the retainage to
Calculate the contractor's True Profit and the "carrying costs" paid by the contractor. Assume a 10% retainage on all contractor payments with the retainage to be paid to the contractor one month after the last payment and after the closeout has begun. Assume that the contractor typically makes a 11% profit. Assume that contractor payments are made 120 days after the Request for Payment is submitted. Also calculate the profit the contractor is expected to make if there were no carrying costs associated with the cash flow
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